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Collective Strategy Development
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Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 1.1.Political,social,ethicalandoperationalneedsforcommonstrategiesbetween organisations and administrations..........................................................................................1 1.2. Identification of methodologies through which collective strategy is developed internally within each organisation and externally international collaborative basis.............................3 1.3 Identification of opportunities for future development of collective strategies to improve the impact on component organisations, administrations & stakeholders.............................5 TASK 2............................................................................................................................................7 2.1 Define collective strategy and consider how it is formed from the policies of the component organisations, administrations and key stakeholders...........................................7 2.2 Identify the key policy and strategy issues which influence collective strategy..............8 2.3 Explain how collective strategy is influenced by the reality of factors – political, global, public interest, media impact, and social, cultural, religious.................................................9 TASK 3..........................................................................................................................................11 3.1 Assess how to resolve the tensions between the cultures and ethics of contributing organisations, administrations and key stakeholders............................................................11 3.2 Evaluate how strategic intelligence is used in the development and formulation of strategy ..............................................................................................................................................12 3.3 Contribute original knowledge and thinking to the formulation and development of collective strategy.................................................................................................................13 TASK 4..........................................................................................................................................14 4.1 Analyse the differences between the aims and purposes of individual organisational strategy and collective strategy............................................................................................14 4.2 Links between aspirations of collective strategy and ethical, cultural and operational objectives of contributing organisations, administrations and stakeholders........................15 4.3 Critical understanding of different organisational, philosophical and methodological approaches to organisational strategy affects organisational and collective change............17 CONCLUSION..............................................................................................................................18
INTRODUCTION Collective Strategy is being considered as an attempt of companies to maintain inter- dependencies through substituting contractual for competitive interconnections with the help of social environment. This is being considered as an essential component which plays a crucial role within an organisations that are doing business at both domestic and international level. Under inter-organisational strategic activity,it is required for organisation's directors, senior managers to carry good strategic leadership skills. In this report, company which has been chosen i.e. Tesco plc. It wasfound in 1919 and itsheadquarter is at Welwyn Garden City,Hertfordshire, England, United Kingdom(Armstrong and Taylor, 2014).In present, Tesco plc is the third largest retailer on the basis of revenues and having around 6,500 stores all over the world. It's founder is Jack Cohen. In 2017, net income which was made by this organisation was £54million. Assignment is going to include analysis of different factors like political, social, ethical and operational needs related to strategies among organisations and administrators. It will also put light over methodologies of collective strategy which is being developed internally under organisation and externally international collaborative basis. On the other hand, it will also focus over different key policies along with strategical issues which influence collective schemes. Away with this, assessment will show links in between aspirations of collective strategy and ethical, cultural and operational objectives of contributing organisations, administrations and stakeholders. Lastly, an analysis has been done in differences among aims and purposes of individual organisational strategy and collective schemes(Axelsson and Easton, 2016).It will help organisations in making better collective strategies through which they can develop themselves over international market. TASK 1 1.1. Political, social, ethical and operational needs for common strategies between organisations and administrations According to Astley and Fombrun, (1983), collective strategy can be defined as an analysis framework which helps in identifying collaborative strategies that is being developed by company with partners including rivals. It can be said that collective strategy plays a crucial role 1
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in strategical management particularly when it is desired to attain goals and objectives in competitive business environment. Apart from this, it is being analysed that there are various factors like political, social, ethical which may affect operational needs of organisations that have collaborated with each other. Both of the organisations Tesco plc and Sainsbury's done collaboration with each other and set a common strategy i.e. to fix prices of commodities so that their sales do not get decreases. But, it is being found that there is a need of political, ethical and social elements while setting over common strategy. With the help of these factors, Tesco plc and Sainsbury's can influence their stakeholders to accept the changes or strategies that are being made by them. Political :Government plays a crucial role when companies develops a strategy. It is mandatory for Tesco plc and Sainsbury's to look at the laws that have already been made by them on set strategy. For an example: government fixed price of a product around£25, then both of the companies have to follow it. On the other hand, it is also essential for organisation's management so that they may manage their operations as per given rules and regulations. Common strategies will be used by both Sainsbury and Tesco regarding political changes made by government. For an example, pricing strategy will be same for both companies if the prices of products are same fixed by local government in both nation. Social :Trends and needs of customers gets changes on a regular basis. Therefore, demand of a particular commodity or a whole segment of products can get reduced due to alterations among consumer's needs(Balogun and et. al., 2014).Therefore, social element is being considered as another need for both of the organisations to understand it and make changes as per the requirements. Apart from this, administrators in present context may take different initiatives so that they meet the requirements of consumers.People have their own choices, preferences and tastes that both Tesco and Sainsbury should analysed social trends of that particular nation where they are operating in order to meet customer requirements. This will also help to know which product is demanding within nation. Ethical :Both of the companies (Tesco plc and Sainsbury's) are having good name in all over world. Therefore, it is required to follow business ethics of different countries in which they are doing business. Collaborative approach may aid both of business firms in making each other stronger through supporting over weak points. For an example: Sainsbury's is out of funding to implement common strategy in which they have agreed on. Here, Tesco Plc may support them 2
over. Therefore, it can be taken as a need of ethical considerations which will help both of companies in adopting common strategy. Apart from this, administrators may go into meetings with company they have done collaboration with so that to imply plan in correct time.Ethics provides a reflection of contribution of business to the well fare of society. Ethics are also related tothecontributionofideasconcerningmanagementrolesandresponsibilities.Common strategies are affected by ethics of people living in different countries that Tesco and Sainsbury should follow ethics on individual level. Operational needs:Every single business firm carries some sort of gaps in their operations which needed to be filled right on time. Therefore, collaborative strategy may aid both of companiesTesco plc and Sainsbury'sin grabbing good position in short period of time and remove those gaps with the help of each other.Operational needs are different for both firms that market segment is different as well as operational needs accordingly. Tesco and Sainsbury should evaluate their operational needs in order to achieve objectives. For an example, resources, personnel and work progress. Henceforth, if Tesco Plc and Sainsbury's consider above discussed elements while setting a common strategy then it may aid them in reaching to desired goals and objectives. Through this, both of organisations can influence their key stakeholders in taking right decisions related to choosing correct product with quality. 1.2. Identification of methodologies through which collective strategy is developed internally within each organisation and externally international collaborative basis. Organisations or partners that have collaborated may set common goals and aims. In order to attain those goals and objectives, it becomes vital for them to have collective strategy. It is being analysed that for success of a company, it is necessary to collaborate with stakeholders or with their partners so that no issue come across while executing a plan. It is also required for companies that have collaborated and are doing business at international level to adopt collective strategies so that to earn profit or to attain all the business concerns in successful manner. There are many methodologies/approaches present in world through which collective strategies can get successfully adopted within each company that have collaborated or among partners & stakeholders(Bangs and MacBeath, 2012).Both Tesco plc andSainsbury'sif wants to collaborate than they may use different methods/approaches in which collective strategy can easily be adopted which are given beneath: 3
Setting up for success:Agreeing on goals and objectives of a group with in an organisation can help in pulling out favourable outcomes. Communication plays a crucial role in this approach. If communication gap among stakeholders and organisations will be zero than it may aid company in making right decisions. For an example : Tesco plc, focused over improving their sales up-to 2% within 3 months. Therefore, it is required for them to make modifications in their grocery products and then promote them over different media. Decision was made by group of seniors of Tesco plc. This activity requires high amount of funding. Thus, informing stakeholders about plan can help Tesco plc in making modifications in manufacturing process as per requirements. This can be considered as a clear instance of evolvement and development of collective strategy.ActionPlanning:Thisisbeingconsideredasanotherapproachthroughwhich development or evolvement can be done of collective strategy among organisations that have made collaboration at international level. This type of planning is much complex in nature because two corporation's objectives do not match with each other. It is required for both of firms to agree over one objective. This can only be done through effective communication or relation among board of directors of two organisations that have collaborated. For an example: Tesco Plc and Sainsbury's who collaborated and have agreed over changing technology at their manufacturing area so that to improve quality of products.They both have used different effective action tools so that to facilitate collective thinking and planning. Maintenance and Growth:Modern world is filled with high competition. Therefore, it is requiredforcompaniestotakeoversmallorcollaboratewithsimilartypeof organisations so that to gain competitive advantages. Maintenance and growth can also be considered as an effective method through which Collective strategy canevolved or developed.Strengthening a partnership may aid in taking use of collective strategy among Tesco plc and Sainsbury's(Bird and Barnes, 2014)On the other hand, it is required for collaborative companies like Tesco plc & Sainsbury's to look into different aspects through which they can strengthen their partnership. For an example: Looking into weak points of each other and telling about the areas where they are lacking can help both collaborated business firms to develop effective relationship or strengthen the partnership. 4
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In addition to this, Internal factors include different practices such as human resource management, sales, marketing and operational activities. On the other hand, external factors on the basis of national and international collaborative basis may encompass political, social, legal, environment factors. Taking help from both internal and external factors will help to make unanimous decisions regarding developing a collective strategy. Value chain analysis is a useful methodology can be used by both firms. PESTLE analysis is also useful to develop collective strategy. It is nothing but de ned as a framework that supports in understanding various activities through which the business attain competitive advantages in comparison with the other rivalry firms in the market effectively. Value chain analysis increase shareholders values. Primary activities such as inbound and outbound logistics, services and operations and sales and marketing. In addition, supporting activities such as technological development, procurement, infrastructure and human resorce management. Cost leadership strategy will also faciliate effective information technology system within firms. 1.3 Identification of opportunities for future development of collective strategies to improve the impact on component organisations, administrations & stakeholders In business world, every single organisation wants to have a secured future looks to have strongersustainability.Collectivestrategiescanhelpcompaniestomanagetheirinter- dependence at social environment and can create high number of opportunities as well. Both administrators and stakeholders are being considered as major components of an organisation and they also plays an important role for business firms and impact over them. Some of opportunities that can give Tesco Plc and other companies with the help of collective strategies are given below:Entering new geographical markets (developing countries): Launching business in a whole new country who are already having a stronger economy can be taken as an opportunity for Tesco plc. It will majorly impact over stakeholders, administrators as well as on company. Here, interdependency of collective strategy will help Tesco plc in taking different initiatives. Entering a new market with products will help company in giving high amount of returns over investments that has been made by key stakeholders of Tesco. For an example : Tesco Plc has made their objective to launch its stores in India. Civilians of India majorly follows various cultures(Bisbe and Malagueño, 2012). Therefore, if Tesco plc understands that what exactly people with distinctive culture are 5
looking for than it will help them in making modifications in grocery products as per the requirements. This will develop their right opportunities.Focusing on a larger elderly population with greater spending power: This is being consideredasanotheropportunitythatmaybroughtbycollectivestrategyfor organisations. If Tesco plc, keeps its focus over targeting elderly people who are mostly retired or stays at their home in high numbers then it can be said that company may improve its sales and attain specific goals and objectives as well. For an example: Tesco plc keeps its focus on women who have high spending power and developing right products for them as per the required prices. It can be taken as an effective collective strategy that may impact positively over management, stakeholders and over company as well. For an example: targeting women and men with age over 35 as they majorly carries high spending power of money than segment of demographic. This will help Tesco Plc in giving good training to staff members so that they can deliver right service with relevant resources.Online marketing: This is being taken as an effective opportunity that can be given by collective strategy which can impact over Tesco plc and its stakeholders as well. Therefore, it can be considered as an effective approach through which company may improve profit margins. On the other hand, if organisation will focus over online marketing than it is may be possible that their sales will directly improve. Through this, Tesco Plc may secure its future. For an example: Using right social media tools like Facebook putting some ads over there will directly grab attention of customers. This is being taken as a good instance of direct communication where company is delivering information to consumers of what they are selling. It will majorly impact over sales of company and will help Tesco plc in giving good rate of returns to its key stakeholders. Opportunities which might open up due to legislation changes or political changes: There are many countries that are having good economy in which Tesco Plc is not doing business. This is being taken as an effective collective strategy which can positively impact over company, administers and its stakeholders. Slight change in legislations can help organisation in generating good revenue(Biscop, 2016). For an example : Location likeIndia'seconomyisrapidlygrowingandhavemadeliberalisedpoliciesfor organisations that are looking for business expansion. Using right resources like perfect 6
budget may aid company in grabbing a good position and would not cost much to both Tesco plc and do its stakeholders as well. As the market is increasing for both Tesco and Sainsbury, different strategies are required to extend the global reach and also there are chances in which company may face challenges in terms of legislation, competition and many other cultural and non-cultural factors.By entering in markets of developed countries is also a strategic approach to expand business and operational activities. The focus should be on larger elderly population with effective spending power. Online marketing is also an approach that it helps to reach number of customers all around the world. This will help to compete others in the market by enhancing market share. Political changes and legislation changes can be an opportunity for businesses if used and followed accurately and properly. TASK 2 2.1 Define collective strategy and consider how it is formed from the policies of the component organisations, administrations and key stakeholders Collective strategy can be understood as a collaborative effort which has been done by a group of people, partners or organisation so that to meet the requirements or aid in attaining specific goals and objectives. It can be said that majorly there are two factors that may majorly impacts over formulation of collective strategy and these are internal and external. In present context, Tesco plc have focused over making collective strategy with Sainsbury's. Some of its internal factors like: Human resource management, health and safety and inner environment may help company in formulating collective strategy(Booth and Cammack, 2013). On the other hand, some of external factors like political, social, technology, economy, legal, exterior environment which may majorly influence over collective strategies of Tesco Plc and Sainsbury's. Away with this, it has been evaluated that majorly there are many policies related to organisation, administrators and key stakeholders which may aid Sainsbury's & Tesco plc in developing the collective strategy. Organisation:Vision of Tesco plc is “We make what matters better, together.” and have adopted a policy named as protector line which helps in protecting staff members, suppliers and their partners from wrongdoings. Therefore, this policy can be helpful in removing all the issues 7
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and aid company in making or formulating the collective strategy with Sainsbury's which is doing business in the same field. Administrators:One of the policy of Tesco plc that has been made by management is that working environment of workstation and of shops should stay much healthy and positive. Thus, it can be helpful in making collective strategy. This can be understood with an example: At the time of collaboration of Tesco Plc and Sainsbury's, in meetings seniors of Tesco listens to all the suggestions that are being given by their subordinates and then only make decisions which is a good point through which it may aid in making or formulating the collective strategy. Key stakeholders:Tesco plc, takes CSR activities into the action or in considerations in every quarter of a year. It can be taken as an activity related to stakeholders and have decided to use 10% of profit to spend over improvising the environment and living standards of social people(Buller and McEvoy, 2012).This can be adopted by Sainsbury's as well and help in forming out collective strategy to gain many competitive advantages.\ Two levels of strategic planning is cricual for businesses in terms of collective strategies. Such as business strategies and corporate strategies. Corporate strategies have broader focus towardssettingbusiness.Collectivestrategyisnothingbutasystematicapproachby collaborating organizations with a view to deal with the variation in their inter-organizational environment. Such strategies may be proactive, forestalling unpredictable behaviour by business. 2.2 Identify the key policy and strategy issues which influence collective strategy Tesco plc which is doing business at international level and have around 6500 stores. Thus, it is being analysed that there are ample number of policies that have been made by Tesco plc so that they do not get into trouble while doing business. Some of policies related to human resource management, manufacturing process and quality are made by Tesco Plc which may impact over collective strategy. Collaboration with Sainbury's of Tesco plc may aid both of them in hitting their targets or attaining goals and objectives. Since, both of business firms are doing business at international level, therefore it can be said that there are many legal and ethical issues which are being faced by this company. Further, Tesco plc is also required to comply with the Canadian, US and European laws in relation with the international business transactions(Chan and Hui, E .S. I., 2014).The most important policy under the international business policy is “International Bribery Legislation”. Canadian as well 8
as United States has various laws that prohibit the local organizations to engage into illegal and corrupt practices at the time of dealing with the foreign government. When speaking in relation with Canada, this type of law is popularly known as “Corruption of foreign public official act” and equivalent to this, in US, it is being famous by the name “Foreign corrupt practices act”. Under this law, offering gift, bribe, payment or any other benefit for the purpose of having some business advantage is considered as a great offence. In addition to this, companies or individual found engaging into these practices that will be liable for various penalties, which may include personal as well as corporate fines or imprisonment of individuals. Henceforth, this can be taken as an issue for Tesco plc at the time of developing collective strategy and it may also impact over funding that has been made by organisations in order to collaborate with one another. Therefore, it is required for both of the organisations to consider all the factors through collective strategy can be developed amongst Tesco Plc and Sainsbury's. 2.3 Explain how collective strategy is influenced by the reality of factors – political, global, public interest, media impact, and social, cultural, religious Collective strategies of a company can be influenced by many factors like global political, public media interest, religious, social, and cultural. All of these factors and their impact over collective strategies are given beneath: Global:This factor is mostly concerned with external environment. Thus, this element can be taken as something which may impact over collective strategy and over organisation as well. It is much necessary for Tesco plc to understand this factor so that it do not impact over developing collective strategy with Sainsbury's. Doing business at international level is not an easy task as firms have to follow all the rules and regulations that are being made by parliament of different countries(Cornwall, 2011).For an example, if the government has imposed high regulation and law in relation with conducting a business in the domestic as well as international market, than there are more likely chances that the frequency of pairs wise cooperative behaviour of all business will work in the same industry be very low. Further, if government imposed moderate laws regarding trade than the frequency of collective behaviour will be high. Political:It relates with all the laws and policies that has been made by government. Slight change in policy can impact over collective strategies which is being made by group of people in order to attain a goal or by company so that to enhance sales or reputation among 9
competitive market.For an example :- Change in taxation rate in United Kingdom may impact over Collective strategy among Tesco plc and Sainsbury's in terms of ther collective behaviour which can be low or high as per the rules and regulations imposed by government. Public interest:It is being taken as another crucial factor which may put impact over collective strategy which is being made by Tesco plc. Thus, it is required for company to focus over different perspectives of public and of others as well. With the help of this, organisation may determine whether the collaboration with Sainsbury's or not.For an example,Different firms such as Sainsbury and Asda are offering junk foods and products which are not relevant for public but it is difficult to make collective strategy in this type of situation as they have heir own. Media:This is another element that have impacted over collective strategy which is being made by Tesco Plc with Sainsbury's. Media plays a vital role in promoting products and services over different areas. Social media tools and other related digital technology tools may aid Tesco plc in making promotion that they have taken over Sainsbury's or collaborated with them.For an example media have power to influence collective or inter-organisational strategies of business in terms of providing right or wrong information regarding products and services sold by companies in the market towards customers. Religious: It is being considered as one of the crucial factor that may influence collective strategy. Therefore, it is required for Tesco plc to focus over this element so that to imply collective strategy in much effective manner. With the help of this, Tesco plc needs to understand the concept which is related to religion and do not take any decision related to against the religions that has been followed by targeted customers.For an example, related to an overseas partner organisation in the middle east, India or China religious has a great impact on business that people have various religious and concepts which should be followed by firm in order to remain effective in the market. Social: Trends majorly gets changes as per the needs and wants of customers at international level. Therefore, it is being analysed that small changes among trends may affect collective strategy. Both Tesco plc andSainsbury's needs to look into every single aspect related to social factor which is related to adopted policies by both of organisations and make modifications as per needs so that collaboration can get done in much effective manner. Cultural:Tesco and Sainsbury's both are famous brands and are doing business in international level. Thus, it can be said that companies may face number of differences among 10
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different nations. Thus, it may influence both organisations through adopting right collective strategy which may become beneficial for both of them(Crass, 2013). In addition to this, cultural and social factors also have an impact on formulation and development of collective strategy. The business is operating in grocery and food department that many other eatables in different part of the world. Asda and Sainsbury which are similar like Tesco offers same food which is unhealthy and junk food. Thus, it is hard to formulate a collective strategy as they have their own. TASK 3 3.1Assesshowtoresolvethetensionsbetweentheculturesandethicsofcontributing organisations, administrations and key stakeholders In order to attain success along with growth in today's dynamic business environment it is much required for company to focus over number of factors like political, environmental, economical, social and many more while developing right collective strategy. Process of this type of strategy is enclosed with number of procedures and steps. It is required to look for the company with which it can collaborate so that to improve profit margins. Apart from this, it is being analysed that culture and ethics are the two main factors at international level may bring various number of tensions among organisations, administrations and stakeholders as well. Both of the business firms like Tesco plc andSainsbury'stypically face many challenges in cultural and ethical context while developing a collective strategy. In order to develop a collective strategy, large number of organizations operating in the same market or industry collaborating their strategies with each and other and formulate a collective strategy for the whole. However, it is not such an easy process. Ethical issues among the contributing companies are very harder to detect and it is more difficult to provide remedy as well. On the other hand, cultural issues are easy to detect. Each and every organization like Tesco plc, Sainsbury's and etc. have their own and unique culture. Employees work as per their work culture and in the processofdevelopingacollectivestrategy,thisfactorcanoffermanytensionstothe management of the companies. Thus, it is required for Tesco plc to develop policies so that they can collaborate with Sainsbury's in much smoother manner(David, 2011)Here, it is being found that administrators also plays a crucial role where company like Tesco plc tries to make collective strategy. They can motivate their subordinates to understand and get knowledge of 11
culture which is being followed by other firms. Apart from this, some of key stakeholders of both of the organisations like BOD may give logical arguments in order to remove tension or barrier from both of business firms that have decided to develop collective strategy to attain specific goal. 3.2 Evaluate how strategic intelligence is used in the development and formulation of strategy It is being analysed that success of an organisation or business strategy relatively stay based on different skills along with ability of corporate strategist and management team. If Tesco plc is looking to develop collective strategy then there are a set of information which is needed by organisation. It is required for Tesco Plc to have effective intelligence department so that to develop or formulate the collective strategy. There are few steps through which strategic intelligence can easily be gathered from business world that may aid company in collecting relevant data so that collective strategy can get adopted. Some of activities like: Problems that needs to be resolved Need for consistent planning Investigating, gathering and then combining the information Delivering the answers Thus, these is being considered as systematic approach which may aid organisation in developing right policy(Dul and et. al., 2012). On the other hand, it is required for Tesco plc to focus over different ways through which strategic intelligence can help over application of collective strategy. Mainly, it is being found that need of strategic intelligence is much essential so that to explicate collective strategy. Tesco plc majorly focuses over plans and strategy that are meant for long term, Therefore, in order to develop an effective and strong business strategy it is required for Tesco plc to focus over a systematic pattern of strategic intelligence which includes collection, processing, analysis, and dissemination of aptitude required at the time of adopting an effective strategy. After collection of the data related to relevant objective which is formulating collective strategy in present context, it is required for organisations to focus over analysis. With the help of analysis of strategical intelligence, it may aid Tesco plc to make decisions or take initiatives so that it may aid in adopting collective strategy. With the help of right decisions at correct moment, this organisation can easily develop collaborative based strategy with other companies like Sainsbury's or a group with in an organisation can collaborate with other groups. 12
3.3 Contribute original knowledge and thinking to the formulation and development of collective strategy As given by Hacklin and Wallnöfer, (2012), collective (multi-stakeholder) strategy is being considered as an effective approach through which organisations can easily grab good position at marketplace and can collaborate with stakeholders in crucial times. Thus, it is required for company to focus over different areas so that to this can impact over different areas. As given by this author, it is being analysed that collective strategy may aid company in focusing over which decision needs to be taken so that collaboration can easily be done with other business firms. On the other hand, collaborative strategy and its implementation over groups or over companies requires huge cost and it may consume time as well. But, it reduce all the chances of not hitting targets in given time frame. Stakeholders like BOD, employees and others ofTescoplccandevelopcollectivestrategiesatworkstationsothattomeetnecessary requirements. It has also been analysed that, it is pretty much required for management and administrators of Tesco Plc, to take into consideration the formulation of collective strategy. Withthehelpofcollectivestrategy,Tescoplcmaydirectlydevelopdifferent opportunities. Apart from this, collaborative efforts can be considered as something which aid organizations in contributing will substantially provide benefit to the society, environment, community. But, at the time of implementing the collaborative approach, there are many barriers which stay present and majorly impacts over applying it(Escobar, 2011).Culture, social, legal, political etc. are some of the factors through which it can be said that collaborative strategy can get affected. Thus, it is required for Tesco's stakeholders which affect the development of collective strategy apparently. When talking about the formulation and development of collective strategy, there are mainly three phases that needs to be considered by the management. The very first stage is of diagnosis. Herein, analysis of internal as well as external environment of the contributing Tesco plc is being done. The next stage is of formulation, in which the necessary objectives as per the analysis so conducted are devised. Finally, the last stage is implementation. In this stage, all the developed strategies and plans are put into action. Henceforth,formulationofcollectivestrategyrelatedtokeystakeholderswhere employees may aid Tesco plc in attaining desired goals and objectives in much effective and efficient manner through developing collaboration among employees and board of directors. Effective employee relation will help Tesco plc in grabbing good position at marketplace. 13
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Collaborative efforts by business helps to provide benefits to environment, society, employees, community and stakeholders. It is not easy for business to formulate strategy for this as a lot of difficulties arises in terms of legal, political, social and cultural. Three phases should be considered by firm such as diagnosis in which internal and external environment analysis of business is done. Second phase is formulation, here objectives as per the analysis conducted and devised. The last stage is implementation where all developed strategies and plans are put into action. TASK 4 4.1 Analyse the differences between the aims and purposes of individual organisational strategy and collective strategy Organisational strategy is being considered as a dynamic long-term plan which helps in developing an appropriate pattern towards recognition of targets or vision of a business firm. On the other hand, collective strategy can be known as an analysis of a framework that aid in distinguishing collaborative strategies which is being developed by company with partners including rivals. Relationship in between these strategies is that they both may give long term benefits to collaborative firms(Greer and Hauptmeier, 2012). Long term goals majorly stays beneficial for every single firm in order to sustain at marketplace for a longer period of time. On the other hand, there are many differences present amongst individual organisational strategy and collective one. Lets take an example of two famous firms like Tesco plc and Sainsbury's in order to understand differences amongst both of strategies. The distinction among two and their purposes and aims are being given underneath: Collective strategy's aim and purpose: Main purpose and of collective strategy which is being adopted by Tesco plc is that to follow guidelines which has been set by European Union at the time of Brexit where United Kingdom got evicted. This scenario brought assortment amongst laws and regulations which was related to employment, health, trade, safety and etc., which made this organisation to collaborate with Sainsbury's which was doing business in same sector. This can be considered as a good example of showing proper purpose along with aim related to adopting collective strategy. It can also be understood with the help of considering an instance of rendering quality of grocery related items to consumers.Collective strategy involves stakeholders in terms of funding 14
providers, customers, shareholders and partner collaborative business. There are many purposes to follow and formulate collective strategies and one of them is to follow European Union Guidelines in terms of health and safety, education and environment. Individual organisational strategy: In present context, main aim of business individual organisational strategy is that it may aid company in focusing over products and services (Organizational strategies for coping with organizational change, 2018).It is being found that there are ample number of individual organisational strategy can be adopted by business organisations. It can be said that company needs to adopt changes so that to sustain at marketplace for a longer period of time. Here, Tesco plc has made an individual's organisational strategy which is business expansion and at the moment organisation is having around 6,500 stores all over the world. Henceforth, it can be said that there are various differences stays among individual organisational and collective strategy. With the help of this, Tesco Plc can take different initiatives related to different goals and objectives. Apart from this, both of strategies differs from each other(Haipeter, 2011)It is the responsibility of organisations to look into different aspects so that to make determinations in much effective and efficient manner. Through this, Tesco Plc may directly hit its targets whether it is individual related aims or collaborative objectives.As the firm is operating in domestic market and extending reach to the global market. Expansion strategy include these elements and factors for the purpose of availing different opportunities.Further, with a view to gain loyalty from the consumers, the core purpose of Tesco behind the development of strategy is to provide value to them. Lastly, the company also aims to grow the core business of UK. 4.2 Links between aspirations of collective strategy and ethical, cultural and operational objectives of contributing organisations, administrations and stakeholders It can be said that there are ample number of conflicts that stays present among links in between collective strategy and in internal & external environmental factors like ethical, cultural and operational objectives. It is required for Tesco plc to understand the links in between collective strategy at the time of adopting collaborative strategy. With the help of this, organisation may remove all the conflicts that are linked with collective scheme. Some of major factors and their link with many elements are given below: 15
Ethical :-At the time of making collaboration with Sainsbury's, Tesco plc may face many ethical related issues while developing collective strategy. If Sainsbury's business doing ethics may differ from Tesco, then it may impact over collective strategies. On the other hand, it has also been analysed that it is much required for both of the companies to look into all the ethical considerations so that to bring up affectivity at workstation with each other. For an example:Tesco'smanagementdiscriminatesamongstfemaleandmaleemployeesbut Sainsbury's believes in equality which may impact over following a common or collective strategies because of ethical differences. Thus, this can be taken as a good instance of potential conflicts in link in between ethical and collective approach. Cultural :-In business world, it is being analysed that companies may follow different cultures. Thus, it is pretty much required for both of the organisations Tesco plc and Sainsbury's to look into the cultural deeds and things that are being followed by them. This can help both firms in removing all the cultural differences that may occur at the time of adopting collective strategies and applying them.In addition to this, cultural and social factors in which business operates also have an impact on aims and objectives of collective strategy. The business is operating in grocery and food department that many other eatables in different part of the world. Asda and Sainsbury which are similar like Tesco offers same food which is unhealthy and junk food. Thus, it is hard to formulate a collective strategy as they have their own. Collective strategy influence culture and operational objective of business that their inter- dependence by substituting contractual for competitive interconnected- ness, creating a partially endogenous social environment. Operational objectives :-Business companies majorly does not have same sort of aims and objectives. In present context, both of the companies Tesco plc and Sainsbury's have collaborated with each other. But, it is being found that Tesco aimed its focus over quality and Sainbury's used cost leadership related aim(Hill, 2017). Thus, this can be taken as a conflict amongst two firms who have aimed for adopting a common strategy. Henceforth, this are some sort of potential conflicts under different factors which may majorly impact over collective strategy when two business organisations have looked to adopt. On the other hand, it has also been analysed that there are many advantages which can be given by this organisation through which company may kept its focus over new strategies so that to gain many competitive advantages at this world full of rivals. Stakeholders and administrators 16
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are two major components of Tesco plc to keep their focus over different areas and may majorly raise up conflicts amongst organisations. 4.3Criticalunderstandingofdifferentorganisational,philosophicalandmethodological approaches to organisational strategy affects organisational and collective change It has been examined that there are ample number of approaches related to organisational, philosophical and methodological that may impact over both organisational and collective changes some of them are given below: Organisational approaches : Matrix Structure :-Under this type of approach, it is being analysed that staff members majorly can share their views and information to anyone level of management. If both of companies that have collaborated follows same approach then it help them in adopting collective strategical change that has been made by Tesco plc and Sainsbury's. FunctionalStructure:-Thisstructureisbeingconsideredasthemostcommon framework which is being followed by most of countries in all over world. Slight changes in both of business firms under this structure may impact over adopting changes related to collective strategies that has been taken by both of business firms (Approaches to Organizational Design, 2016). Philosophical approaches : Religious :This is being taken as an effective approach which may impact over changes that are related to both organisational and collective change. Staff members in both Tesco plc and Sainsbury's do not majorly have same religions. Thus, it may impact over thinking and may affect over changes related to collective strategy. Methodological approaches : Survey :-This is a kind of methodological approach which is being used by investigating department of companies. It is being analysed that both of the business firms like Tesco plc and Sainsbury's may follow this type of approach(Jones and et, al., 2011). Therefore, it may aid them in hitting firms through which they can gather relevant information. Through this, it is being analysed that similarities in present context may aid in adopting collective strategy in much effective manner. Henceforth, these are some of approaches which may impact over organisational and collective approaches through which they can hit firms targets. On the other hand, company may 17
focus over different areas which may aid Tesco plc and Sainsbury's in adopting right approach related to change among organisational and collective strategy. CONCLUSION From above mentioned report, it is being concluded that collective strategy can help companies to expand their business and meet all the requirements that are being needed by customers. It has also been summarised that collective strategy may aid organisations when they have made collaborations with other institutions. Away with this, it has also been formulated that global political, public media interest, religious, social, and cultural are some of the factors that may majorly impacts over collective approach. It is also required for companies to understand all the barriers that are present in collective strategy. Along with this, collective strategy also aid company in improving profit margins. With the help of collective strategy, organisation may aid in making effective brand image. It is also necessary for company to analyse the differences among aims and different purposes as well. 18
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